Our energy future: the power of collaboration to transform Australia's energy resources sector

Abstract

After decades of sustained economic growth, Australia is experiencing declining productivity, accelerating technological change and disruption. At the same time, the energy sector is emerging from a massive investment phase, while facing its own perfect storm of disruptive challenges. The industry must navigate these challenges to remain globally competitive. Continuing old practices is a sure pathway to stagnation and decline; we must urgently find different ways to do things. Global benchmarking of the Australian energy resources sector, undertaken recently on behalf of NERA, indicated substantial room to improve the efficiency and productivity of the sector. The report outlines more than AU$5 billion of value through improvements across the following four key areas: supply chain, research and innovation, workforce and regulatory reform, and collaboration is the key. Over the past 24 months, Australian energy-resource companies have focussed on lowering capital cost and improving profitability through efficiency, ensuring the industry has the fundamentals needed to be globally competitive. However, transformational change is needed if the sector is to survive and thrive in this age of innovation and disruption. Further, Australia’s energy resources marketplace is too small to focus only internally. Industry, suppliers, innovators and knowledge experts must collaborate locally, forming connections to access the global marketplace. The size of the prize is significant for everyone. The Australian energy resources sector has the potential to continue to meet the regions energy-resource needs for many years, generate substantial revenue for the nation and grow an export-orientated service and technology sector.